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Errors and Omissions

How Much Are Mistakes Costing Your Company?

For More Information Please Contact:

 Beverly Zolnowski



Click here to download a printable PDF.

Imagine this scenario.

You’re an IT consultant installing software on a client’s computer. You have to disable the firewall to make the installation and, while you’re working, a hacker accesses your client’s database. Your client sues you for damages, even though your actions weren’t intentional.

Mistakes Happen Everyday in Business

From botched orders to losses of data to delivery failures, companies and employees mess up sometimes. Unfortunately, the end result can be an expensive lawsuit and a large judgment.

Furthermore, lawsuits aren’t always about negligence; they’re about allegations of negligence. Considering that we live in a litigious society, any professional or company — including innocent ones — can be sued. And defending your reputation will not only result in high legal costs, but also major losses in productivity.

But with errors and omissions (E&O) insurance, you can protect your company. An E&O policy covers you from claims if your client holds you responsible for errors, or for the failure of your work to perform as promised in your contract.

Fast Facts About E&O Coverage

• E&O provides essential protection to help protect a company’s assets when standard General Liability insurance does not.
• Coverage includes legal defense costs, no matter how baseless the allegations.
• E&O policies will also cover any resulting judgments against you, including court costs, up to the coverage limits in your policy.
• Coverage even extends to both W2 employees and 1099 subcontractors, and can be worldwide in scope.

Companies are constantly at risk of being sued over the services they perform. Even if a lawsuit has no merit, defending against one can be costly. But with a comprehensive E&O policy, you can plan ahead and transfer a portion of your company’s risk to an insurance carrier — reducing the financial impact of any allegation against your business.

This information is advisory in nature. No liability is assumed by reason of the information in this document.

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